1.

Finance:

Ratio
1. Liquidity Ratios
Current Ratio Quick (Acid Test) Ratio Cash Ratio

Formula
Current assets Current liabilities Current assets Inventory Current liabilities Cash + Cash equivalents Current liabilities Net profit after taxes Net sales Sales - COGS Net sales Net profit after taxes Total assets Net profit after taxes Shareholders equity Net profit after taxes preferred stock dividends Average number of common shares

2010
0.42 0.21 0.29

2011
0.41 0.28 0.46

2. Profitability Ratios
Net profit Margin Gross Profit Margin Return on Investment (ROI) Return on Equity (ROE) Earnings Per Share (EPS) 12.9% 77.4% 8.16% 32.93% 13.74 L.E/Share -2.5% 75% -1.5% -10.24% -2.54 L.E/Share

3. Activity Ratios
Inventory Turn Over Days of Inventory Asset Turn Over Fixed Asset Turn Over Net sales Inventory Inventory COGS / 360 Sales Total assets Sales Fixed assets Total debt Total assets Total debt Shareholders equity Long-term debt Shareholders equity Profit before taxes + interest charges Interest charges Current liabilities Shareholders equity Market price per share Earnings per share Annual dividends per share Annual earnings per share Annual dividends per share Current market price per share 80 19.97 Days 0.63 1.03 82 17.63 Days 0.6 1.01

4. Leverage Ratios
Debt to Asset Ratio Debt to Equity Ratio Long-term Debt to Capital Structure Times Interest Earned 68% 168.71% 143.98% 77% 340.91% 255.35%

3.64 122.20%

1.01 269.25%

Current Liabilities to Equity

5. Other Ratios
Price/Earnings Ratio Dividend Payout Ratio Dividend Yield on Common Stock 10.96 -30.75 -

Comments: A. Liquidity Ratios: Current ratio indicates that in 2010 for each EGP 1of current liabilities there is only EGP 0.42 of current assets to cover it and slightly decreased to EGP 0.41 in 2011 which indicates the companys weak liquidity position. Quick ratio indicates that in 2010 for each EGP 1 of current liabilities there is only EGP 0.21 of liquid current assets to cover it with slight increase in 2011 to reach EGP 0.28 however it still shows Mobinils inability to cover its short-term obligations. Cash ratio indicates that in 2010 for each EGP 1 of current liabilities there is EGP 0.29 of cash to cover it which slightly increased to 0.46 in 2011 but still shows Mobinils inability to meet its current obligations and need to enhance its liquidity position.

B. Profitability Ratios: Profit Margin decreased from 12.9% (i.e. each EGP 1 of sales generates EGP 0.129 of net profit) in 2010 to -2.5% (i.e. each EGP 1 of sales generates EGP 0.025 of net losses) in 2011 indicating Mobinils weak profitability. Gross profit Margin decreased from 77.4% in 2010 (i.e. for each EGP 1 of sales, EGP 0.774 of gross profit is generated) which decreased in 2011 to 75% (i.e. for each EGP 1 of sales, EGP 0.75 of gross profit is generated) which shows the companies inefficient and ineffective management of its costs. ROI indicates that in 2010 each EGP1 invested in assets generates EGP 0.0816 of profit which deteriorated to generate EGP 0.015 of losses in 2011 indicating the inefficient use of Mobinils assets. ROE indicates that in 2010 each EGP1 of equity generates EGP 0.3293 of profit which deteriorated to generate EGP 0.1024 of losses in 2011 indicating Mobinils weak profitability. EPS shows that Mobinil generated EGP 13.75 for each outstanding share in 2010 that declined in 2011 to generate EGP 2.54 of losses.

C. Activity Ratios: Inventory Turn Over indicates that inventory revolved 80 times in 2010 which increased to 82 timed in 2011 but this returns to the fact that Mobinil is a service provider with no much inventory on hand. Days of inventory indicates that it takes Mobinil 20 days in to convert inventory into cash that decreased to 18 days in 2011. Asset Turn Over indicates that for each EGP 1 of Total Assets used to generate EGP 0.63 of sales in 2010 that decreased to generate EGP 0.6 in 2011 indicating the company's weak asset management Fixed Asset Turn Over indicates that for each EGP 1 of Fixed Assets used to generate EGP 1.03 of sales in 2010 that decreased to generate EGP 1.01 in 2011.

D. Leverage Ratios: Debt to Asset Ratio indicates that for each EGP 1 of total asset is financed by EGP 0.68 of debt in 2010 which increased to EGP 0.77 in 2011 indicating the increasing riskiness of the company where it depends more on debt financing rather than equity financing. Debt to Equity Ratio indicates that the company has EGP 1.69 in debt for every EGP 1 of equity in 2010 that increased to EGP 3.41 for each EGP1 of equity which shows the high dependence on debt relative to equity. Capital structure ratio indicates that long term liabilities represented 144% of the capital structure in 2010 and increased to 255% in 2011 indicating the firms high dependence on long-term debts. Times Interest Earned recorded 3.64 times in 2010 and decreased to 1.01 times in 2011, however it still shows the company's ability to cover it interests through its earnings for one time. Current Liabilities to Equity indicates that short term liabilities represented 122% of the capital structure in 2010 and increased to 269% in 2011 indicating the firms high dependence on short-term debts.

E. Other Ratios: Price to Earnings ratio recorded 10.96 in 2010 indicating the increasing expectations of the investors of higher earnings in the future which decreased to -30.75 in 2011 indicating the unfavorable expectations from the investors point of view. No dividends where distributed during both years of analysis 2010 & 2011 due to the weak financial performance.